Australian house prices have recorded their sharpest quarterly fall on record, with every capital city declining for the first time in 15 years as higher interest rates and weaker buyer confidence bite.
Combined capital city house prices fell 4.7% in the September quarter to a median of about A$1.23 million.
Perth recorded the largest fall at 7.4%, while Brisbane dropped 5.4%, Sydney 4.7% and Melbourne 3.3%.
Unit prices also weakened, falling 3.5% across the capitals in their steepest quarterly decline in around seven-and-a-half years.
Buyers gain the upper hand
The downturn reflects a sharp deterioration in affordability following repeated Reserve Bank interest rate increases.
Borrowing capacity has fallen, auction activity has slowed and properties are taking longer to sell.
Higher-value homes are also falling more sharply than lower-priced properties, with fewer buyers able to finance purchases at the top end of the market.
In Sydney, the most expensive quartile of homes has fallen more than twice as much as the lowest-priced quartile.
The widening weakness suggests Australia’s housing downturn is becoming increasingly broad rather than being concentrated in a handful of cities or property types.
Further pressure could emerge if the RBA raises rates again, with unemployment also climbing and household spending remaining subdued.
The latest figures strengthen the view that Australia’s property market has entered a much more difficult phase, with sellers increasingly being forced to adjust expectations while buyers gain negotiating power.
